Greece consumer goods

Philip Morris to make tobacco sticks for IQoS in Greece

On March 22nd Philip Morris International Inc said that it would invest about €300m (US$323m) to manufacture tobacco sticks for its alternative cigarette, known as IQoS, in Greece. The tobacco giant will convert a manufacturing facility of its partner, Papastratos, a local tobacco company to make these sticks. These are sold as Heets or Heatsticks.

The US company said that construction to expand the plant would begin immediately, with production expected to start in January 2018. The facility will have an annual capacity of about 20bn tobacco sticks and will create 400 new jobs. It currently employs 800 employees. This will be the company's third facility dedicated to smoke-free products, after one each in Italy and Switzerland.

Philip Morris's move is in line with its long-term aim to stop selling traditional cigarettes. The company, best known for its Marlboro brand of cigarettes, is focusing on developing products that pose less of a health risk than conventional cigarettes, such as the IQoS.

The alternative product heats tobacco instead of burning it, releasing less than 10% of the toxins contained in cigarette smoke. IQoS has cost the company US$3bn in research and development expenses spanning over a decade. Philip Morris expects the product to be available in 30 markets by end-2017.